Leading ingredient manufacturer for the agriculture and animal nutrition industry
Evaluating economic value creation in the agri tech industry
Project Scope & Objective
The company was delivering high performance products but was struggling to define prices for both:
- Existing products : how to explain prices and price changes to customers
- New products : how to position product in the market, taking into account competitive alternatives
The objective was to perform an economic value calculation (EVC) for two products from their range
Project Summary
- Economic Value Calculation is a collaborative process to compute the additional economic value delivered to the customer using a product compared to its next best alternative (competitive product). We helped the company by:
- Sharing knowledge about EVC, frameworks and key concepts
- Organizing and conducting workshops on value drivers definition
- Providing an EVC model to support the set up of these drivers and supporting calculations
- Designing and implementing the EVC drivers in a ready-to-use tool, to be leveraged by the sales teams
Achievement
Client received a EVC template for the sale force, tailored for their products and adjustable within any region. This support helps the company either to execute price increase, to demonstrate value creation to the customer, and to drive price acceptance.
In addition to this lever, the client gained knowledge on value creation analysis and developed a better understanding of its key competitive differentiators.